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NEW QUESTION: 1
Which of the following is NOT a method a supply management professional would use to measure forecast accuracy for future supply needs?
A. Mean square error of the square of errors.
B. The mean percentage error or forecast error.
C. Chi-square calculations for regression
D. Standard error rates of the distribution.
Chi-square calculations are used for sampling tests to compare observed and expected values NOT a method a supply management professional would use to measure forecast accuracy for future supply needs. Standard error rates of the distribution. mean squared error, and the mean percentage error or forecast error area all correct measures of forecast accuracy.
NEW QUESTION: 2
When there are numerous property and equipment transactions during the year, an auditor who plans to
assess control risk at a low level usually performs:
A. Tests of controls and extensive tests of property and equipment balances at the end of the year.
B. Analytical procedures for current year property and equipment transactions.
C. Analytical procedures for property and equipment balances at the end of the year.
D. Tests of controls and limited tests of current year property and equipment transactions.
Choice "C" is correct. Since control risk is assessed at a low level, tests of controls would be required to
evaluate the effectiveness of the internal controls to support that assessed level. Assuming controls are
operating effectively, only limited substantive testing would be performed.
Choice "A" is incorrect. Extensive tests of property and equipment balances would not typically be required
when control risk is assessed at a low level.
Choice "B" is incorrect. Since control risk is to be assessed at a low level, tests of controls would be
required. Analytical procedures would not be particularly useful, since property and equipment transactions
are subject to management discretion.
Choice "D" is incorrect. Analytical procedures would not be particularly useful, since property and
equipment transactions are subject to management discretion. Year-end balances may therefore be
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